Blog

Written by Allison Miller, VP of Compensation Initiatives at CCSA

Early Educator’s Day

Australia has the right idea. They celebrate Early Educator’s Day on September 4, 2019. We should do the same! We have National Provider’s Day in May, but shouldn’t we celebrate teachers who work with our young children at every opportunity? They deserve our recognition; children need them, parents need them and the nation needs them. They truly are the workforce behind the workforce.

The Workforce Behind the Workforce Deserves Better Compensation

Early educators make it possible for other professionals to go to their jobs, to lend their expertise to the community, to grow the economy. To be productive in the workforce, parents need peace of mind that can only come from knowing their children are in safe, stable, positive and engaging environments with teachers who can appropriately guide their learning.

It’s a lot to expect when early childhood teachers, on average, earn $10.97 per hour in North Carolina. It’s not an easy problem to solve because most parents cannot afford to pay more than they do. That’s where the Child Care WAGE$® Program comes in.

A Compensation Strategy: The Child Care WAGE$® Program

Early educators deserve to be paid commensurate with their education and the importance of their jobs. Sadly, that’s simply not the case. The Child Care WAGE$® Program is an education-based salary supplement program for teachers, directors and family child care providers working with children birth to five. Awards are issued after the eligible participant has completed at least six months with the same child care program.

As a result of this additional compensation, early educators not only earn more, but they are more likely to stay and increase their education. The quality of child care is improved when turnover rates are low, education is high and compensation is fair.

WAGE$ is made possible with the funding provided by the local Smart Start partnerships that elect to participate and the NC Division of Child Development and Early Education.

Does WAGE$ work?

Yes! In the fiscal year 2018-2019, WAGE$ recipients from the 55 participating N.C. counties earned an average six-month supplement of $974, which breaks down to about $.94 more per hour for full-time employment. The vast majority of participants had at least a two-year degree with significant early childhood coursework and they stayed in their programs. Only 14% left their employers last year, which is notably lower than turnover rates prior to WAGE$ availability.

WAGE$ Recognizes Early Educators

In addition to the program results of increased education, retention and compensation, WAGE$ recognizes the importance of early educators and the key role they play in our lives. It is a way to show appreciation and to boost morale for an underpaid workforce.

In fact, 97% of survey respondents said that WAGE$ makes them feel more appreciated and recognized for their work.  The feedback of participants always highlights this message.

One teacher shared, “WAGE$ has shown the value of giving incentives to teachers.  Teachers need to feel appreciated and rewarded.  All teachers deserve a chance to feel special and loved; that is how WAGE$ makes me feel.”

We all need to take the time to show our appreciation to this workforce. They deserve it. Happy Early Educator’s Day!

For more information, view the Child Care WAGE$® Program: NC Statewide Report (FY19).

Marsha Basloe, President of Child Care Services Association

It’s common sense that parents with young children need access to child care in order to obtain and retain a job, which makes child care providers a vital part of local and state economies.  That’s why a report released by the Committee for Economic Development, Child Care in State Economies: 2019 Update is so important. The report reviews the market-based child care industry (which includes centers and home-based child care providers) and estimates that child care has an overall economic impact of $99.3 billion – supporting over 2 million jobs throughout the country.

What the report shows is that there is a strong link between child care and state and local economic growth and development. And, that the child care industry causes spillover effects (additional economic activity like the purchase of goods and services and job creation or support within the community) beyond those employed within child care or the business income of those operating centers or home-based programs.

Here in North Carolina, child care programs have an overall economic impact of $3.15 billion ($1.47 billion in direct revenue and $1.67 billion in spillover in other industries throughout our counties and cities).  Child care programs have an overall jobs impact throughout the state of 64,852, which includes 47,282 individuals who are employed within child care centers or who operate a home-based business plus another 17,570 in spillover jobs – created through the activity of those operating child care programs.

The economic impact of child care matters because it helps drive local economies. When parents can access child care, they are more likely to enter the workforce and stay employed.

Access to affordable child care also supports parents who seek additional education or job training, which can result in higher earnings over an individual’s lifetime. For example, according to U.S. Census Bureau data, the difference between the income of a parent in North Carolina with a high school degree and a parent who dropped out of high school is $6,231 annually[i], but over a lifetime, that’s $249,240 the parent would earn just by going back to school to earn a high school diploma.  If that parent were to enroll in community college, and obtain an Associate’s degree, he or she could earn $10,652 more annually[ii] or $426,080 more over a lifetime compared to a parent who has not graduated from high school.

Earnings for those with a college degree are that much higher — $17,748 annually[iii] for a parent who has a Bachelor’s degree compared to a parent with an AA ($709,920 more over a lifetime). When parents have access to child care, both labor force participation grows (and with that, the ability for parents to support their families) and also the potential for parents to return to school to increase their earnings over the long-term becomes possible.

Child Care Costs & Labor Force Participation

In North Carolina, the average annual cost of child care is expensive. For center-based infant care, the cost is about $9,254 per year, and for home-based care, it’s $7,412.[iv] The cost of center-based infant care exceeds the cost of tuition at our 4-year universities and is 19.2% of state median income. With an understanding of the economic impact of child care, it’s concerning that parents may opt out of the workforce or reduce their hours at work when they can’t afford to pay the cost of child care. It not only means that parents could be less likely to be self-supporting, but that local economies are impacted as well – twice in fact. First, they are impacted by families who without employment may depend on welfare and second, communities are impacted by revenue foregone (no earnings or reduced earnings by those who reduce their hours means less revenue to support basic community needs such as police and fire protection, or local schools).

The CED report finds an economic return related to the use of child care subsidies that support parents in entering or staying in the workforce. CED estimates that for every additional federal dollar spent for child care subsidies to help parents work, there’s a $3.80 increase in state economic activity.

Child Care has a Two-Generational Impact

While I’ve mentioned the economic impact of child care on state and local economies, there is also the two-generational role that child care plays with regard to families and young children. Child care is a work support for parents, but it also enables children to be in a setting that promotes their healthy development and school readiness (while their parents work).  In this way, child care not only has a direct impact on the economy today, but also impacts the economy of tomorrow.

The impact of child care is broad-based:

  • There’s the direct impact of economic activity or revenue generated by those in the child care industry (centers and home-based providers),
  • There’s the indirect impact or spillover impact that results within communities from the operation of these businesses,
  • There’s the employment impact of jobs within the industry and spillover jobs as a result of the industry,
  • There’s the employer impact as parents who have access to child care reliably show up for work and are productive while at work, and
  • There’s the impact on children who have access to quality child care that supports their healthy development.

Check out CED’s Child Care in State Economies: 2019 Update report today.


[i] U.S. Census Bureau, Table S2001, Earnings in the Past 12 Months, 2017 American Community Survey. https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_17_1YR_S2001&prodType=table

[ii] Ibid.

[iii] Ibid.

[iv] The US and the High Cost of Child Care:2018, Child Care Aware of America, http://usa.childcareaware.org/advocacy-public-policy/resources/research/costofcare/